Electricity and Energy Minister Kgosientsho Ramokgopa’s nuclear plan to secure approval from National Treasury by next month for a 2 500MW power plant has hit an obstacle, with the DA saying the announcement is premature as a court matter has to be finalised first.
Ramokgopa told a Sunday newspaper that a team was working on the deal to finalise the procurement structure of the new nuclear-build project and work was at an advanced stage.
“The procurement structure will require National Treasury’s approvals on the financing ... You can imagine the magnitude of that deal. There’s the latest (nuclear) technology that is very rapid to deploy, relatively cheap and more efficient. We must resolve the issues of who will operate the plant, but I think I can say before we even conclude (it) that it will be Eskom,” the minister said.
DA MP Kevin Mileham, the party’s spokesperson on energy and electricity, said on Sunday that they were concerned about reports that procurement of new nuclear power was at an advanced stage.
“The DA is currently challenging the decision by Nersa (National Energy Regulator of SA) to concur with the procurement of 2 500MW of new nuclear power on the grounds of procedural irregularity and irrationality.
“Founding and supplementary affidavits have been tabled before the Gauteng division of the high court. Nuclear power remains a key component of South Africa’s electricity generation mix for the foreseeable future. It demands, however, compliance with all regulatory and safety requirements, and needs to demonstrate affordability,” Mileham said.
He said his party demands that Ramokgopa immediately review the ministerial determination to procure new nuclear power and take the appropriate steps to rectify the non-compliance, ‘failing which our legal challenge on procedural and rationality grounds will proceed’.
Mileham said Ramokgopa, Mineral and Petroleum Resources Minister Gwede Mantashe, former public enterprises minister Pravin Gordhan, President Cyril Ramaphosa, Eskom and Nersa are respondents in the matter before the Gauteng division of the high court, which has been set down for October 15 and 16.
Energy experts on Sunday said Ramaphosa had signed the $8.5 billion (R154.9bn) Just Energy Transition Partnership (JETP) two years ago which would see South Africa look at ways to reduce carbon emissions while focusing on renewable energy sources.
They have raised concern at the cost of building a nuclear power station, and the time needed to build it.
Craig Morkel, chairperson of the Gas Economy Leadership Team at Saoga (SA Oil and Gas Alliance), said nuclear power was a process that would take time in the planning and procurement stage.
“Nuclear power is a cleaner option compared to coal-fired power as it emits less carbon emissions. However, we need to be more informed on the process. The first thing we need to be made clear to us is the Integrated Resource Plan 2019, and if it is a guide or a requirement for the procurement. If it is a guide then we have no issues with the government’s procurement process to build the nuclear power plant,” Morkel said.
He said clarity was also needed on the technology needed for the nuclear plant. “These are in two categories: Small Modular Nuclear Reactors (SMRs) and light-water reactors. This needs to be made clear, which one will be used and where it will be sourced from.”
Energy expert Clyde Mallinson said he was surprised at the speed the government was going about the process of building a nuclear plant.
“The minister is saying they are trying to secure approval by the National Treasury by next month and then have public consultations. However, they are supposed to have public consultations first.”
Mallinson said a nuclear plant was very costly and once built it would cost the taxpayer money to keep it running.
“Nuclear plants take years to build and 97% of them are not finished in the planned time. We have better options with renewable energy such as wind and solar,” he said.
Professor Wikus van Niekerk, dean of engineering at Stellenbosch University, said he did not think the nuclear power plant would be built.
“The National Treasury does not have the funds to build a nuclear plant and I can’t see them approving this. They’ll have to pay other countries millions to build a nuclear plant. And remember, it’s a long-term project, so I can’t see it happening,” Van Niekerk said.
Ruse Moleshe, managing director of RUBK, an energy and infrastructure consulting and advisory company, said it was not surprised to hear that a nuclear project was being planned and that it would take up to 10 years to build.
The Mercury